Natural Gas Price Forecast – Natural Gas Markets Continue to WanderThe natural gas markets drifted a little bit lower during the trading session on Friday, as we continue to dance around the 50 day EMA in general.
Natural gas markets have drifted a little bit lower during the trading session on Friday, as we continue to dance around the 50 day EMA. Natural gas markets of course have been a bit soft, but we are starting to see signs of support in general. The market is trying to bottom due to the fact that we have seen a lot of potential bankruptcies coming down the road in the United States, and as a result it is highly likely that the supply will dwindle a bit. However, we have also been seen a lot of cargo shipments canceled lately, and that suggests that perhaps the market still has a lot of work to do before getting rid of the oversupply situation.
NATGAS Video 25.05.20
In looking at the chart, the $1.80 level looks to be rather supportive, so if we were to break down below there it is likely that we will go looking towards the bottom of the candle from a couple of weeks ago that opens up the door to the $1.70 level. On the other hand, if we break above the top of the candlestick from the Friday session it opens up the possibility of a move towards the $2.00 level, an area that is obvious as a large, round, psychologically significant figure. Furthermore, the 200 day EMA above is at the $2.09 level, so it is also possible that the market is going to be trapped between these two moving averages. Ultimately, the market is likely to continue to see a lot of choppiness.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.